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The Czech Labour Market and Its Structural Changes in the Period 1990-2006


  • Magdalena Kotýnková


This paper deals with the situation on the Czech labour market in the period 1990-2006. It shows the status and development of the supply and demand sides of this market. Great attention is paid to the long-term trends in employment, self-employment, unemployment, and long-term unemployment. The principal findings concern the dominance of the supply side of the labour market, especially the unfavourable decline in young labour force in the present difficult period, a special pattern of Czech self-employment development, a heavy tax burden on employees' income, and distortions of labour market caused by high labour costs (social and health insurance). Last but not least, the paper explores the labour market flexibility.

Suggested Citation

  • Magdalena Kotýnková, 2008. "The Czech Labour Market and Its Structural Changes in the Period 1990-2006," Acta Oeconomica Pragensia, University of Economics, Prague, vol. 2008(3), pages 47-61.
  • Handle: RePEc:prg:jnlaop:v:2008:y:2008:i:3:id:105:p:47-61

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    References listed on IDEAS

    1. Vladislav Flek & Lenka Marková & Jiøí Podpiera, 2003. "Sectoral Productivity and Real Exchange Rate Appreciation: Much Ado about Nothing?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 53(3-4), pages 130-153, March.
    2. Taylor, Alan M, 2001. "Potential Pitfalls for the Purchasing-Power-Parity Puzzle? Sampling and Specification Biases in Mean-Reversion Tests of the Law of One Price," Econometrica, Econometric Society, vol. 69(2), pages 473-498, March.
    3. Goldberg, Pinelopi K. & Verboven, Frank, 2005. "Market integration and convergence to the Law of One Price: evidence from the European car market," Journal of International Economics, Elsevier, vol. 65(1), pages 49-73, January.
    4. Craig S. Hakkio, 1992. "Is purchasing power parity a useful guide to the dollar?," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 37-51.
    5. Alan M. Taylor & Mark P. Taylor, 2004. "The Purchasing Power Parity Debate," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 135-158, Fall.
    6. Tomas Holub & Martin Cihak, 2003. "Price Convergence: What Can the Balassa-Samuelson Model Tell Us?," Working Papers 2003/08, Czech National Bank, Research Department.
    7. Martin Èihák & Tomáš Holub, 2003. "Price Convergence: What Can the Balassa-Samuelson Model Tell Us? (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 53(7-8), pages 334-355, July.
    8. Bela Balassa, 1964. "The Purchasing-Power Parity Doctrine: A Reappraisal," Journal of Political Economy, University of Chicago Press, vol. 72, pages 584-584.
    9. Alan M. Taylor, 2002. "A Century Of Purchasing-Power Parity," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 139-150, February.
    10. Charles Engel & James Morley, 2000. "The Adjustment of Prices and the Adjustment of the Exchange Rate," Working Papers 0009, University of Washington, Department of Economics.
    11. William D. Nordhaus, 1975. "The Political Business Cycle," Review of Economic Studies, Oxford University Press, vol. 42(2), pages 169-190.
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    More about this item


    unemployment; labour market; labour force; long-term unemployment; supply and demand side of labour market; employment; self-employment;

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand


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